Analysis Of The Economic Consequences Of The Reduction Of Major Shareholders Of Listed Companies

Equity division is the special problems in the process of economic system transformation.With the development of capital markets,equity division can not adapt to the requirement of capital market reform,opening up and stable development.And it has been the main problem of obstructing the healthy development of the stock market.The China Securities Regulatory Commission(CSRC)officially launched and implementedthe reform of non-tradable shareson April 29,2005.To some extent,the reform of non-tradable shareschanges the problem such as "stock with different rights" in the listed companies.And it makes the market step by step into the era of full circulation.Butwith the lifted shares trading,especially the substantial reduction of holding the trading non-circulation stock,it has a huge impact to the market,and even harm the smooth and healthy development of the whole market.In early 2016,the CSRC issued holdings shares certain rulesabout the major shareholders of listed companies,to limit their positions.This papercombines the basic theory of major shareholders holdings,and is based on the specific institutional background and market situation of listed companies.It surveys major shareholders holdings of company.Then according to the financial data of the enterprise and industry environment,it analyzethe motivation and economic consequences caused by the major shareholders holdings.Thus,in order to solve the major shareholders holdings for the impact of the capital market and to the interests of minority shareholders,as soon as possible the construction and perfect the relevant system to restrain large shareholders' behavior is very necessary and urgent.Finally,aiming at how to regularize large shareholders' behavior,and to standardize market order,this article puts forward some suggestions from the different angles.It mainly includes: first,relevant departments have to strengthen the system construction and perfect the laws and regulations to standardize the behavior of underweight.Second,the regulatory agencies shall stick to strict management and in accordance with laws,strictly punish offenders.Third,the major shareholders shall exercise rights according to law.Fourth,the company managers should strengthen capital chain management and guarantee the smooth flow of health;Fifth,small and medium investors should do a good job in prudentinvestment.